Quality Council of India

Venue: 

Workshop ID:Date:

Financial Support to MSMEs in ZED Certification Scheme

Industry Awareness Programme

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Objectives of today’s programme

Source: 

Objectives: 

▪ Introduce ZED scheme to participants

▪ Introduce ZED Rating & Certification Process

▪ Broad overview of the ZED Maturity Assessment Model 

▪ Answer queries if any

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The Scheme

FINANCIAL SUPPORT TO MSMEs IN ZED CERTIFICATION SCHEMEName

The Scheme is an extensive drive of the Government of India to enhance global competitiveness of MSMEs by providing them financial support in assessment, rating and handholding of its manufacturing processes on Quality and Environment aspects

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A few basic facts (1/2)

• This scheme is applicable to Micro, Small & medium Enterprises – ManufacturingSector only

• Definitions of Micro, Small & Medium Enterprises is in accordance with theprovision of MSMED Act, 2006.

• Manufacturing Enterprises are enterprises engaged in the manufacture orproduction of goods pertaining to any industry specified in the first schedule tothe industries (Development and regulation) Act, 1951) or employing plant andmachinery in the process of value addition to the final product having a distinctname or character or use. The Manufacturing Enterprise are defined in terms ofinvestment in Plant & Machinery.

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A few basic facts (2/2)

• The model for Service Sector is under validation and the pilot is underconsideration by the Ministry

• Though Large industries are not covered in this scheme, the model is applicableacross all sectors and size

• An MSME must be registered under the UAM (Udyog Aadhaar Memorandum) toavail the benefits under the ZED scheme. Registrations under UAM are free. Itmay be noted that the Ministry has not appointed any representative for UdyogAadhaar Registration.

• UAM is a one‐page simple registration form for online filing of UAM whichreplaces the filing of Entrepreneur’s Memorandum Part I & II. The filing of UAMcan be done on http://udyogaadhaar.gov.in

• Registration is online and user‐friendly• UAM can be filed on self‐declaration basis• No documentation required• No Fee for filing• File more than one Udyog Aadhaar with same Aadhaar Number.

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Roadmap

PILOT PROJECT

(Completed in Jan, 2016)

National Rollout Scale‐up

• Pilot Project to test ZED Model

• Evolve an ecosystem around ZED

• Test existing value proposition and reveal deficiencies 

• Financial Support through subsidy by MoMSME

• Assess, rate and handhold 22,222 MSMEs units in the next 2‐3 years

• Finalize value proposition for the ZED Scheme

• Build Capacities and capabilities to Scale‐up the model

• Target to cover 1.25 mnMSMEs in the next 5‐7 years

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Agenda for today session

Introduction to ZED scheme

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“Our manufacturing should haveZERO DEFECT so that our products should not be rejected in the global market. We must also keep in mind that our manufacturing is done with ZERO EFFECT so that it does not have any negative impact on our environment.”

- August 15, 2014

INTRODUCTION TO THE SCHEME

“The Government has decided to implement the ZED Certification Scheme for 22,222 MSMEs unit with a total budget of Rs. 491 Crores (including Government of India contribution of Rs. 365 Crores) during the 12th Five Year Plan”

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Objectivities and activities under ZED scheme

▪ To create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED rating

▪ To drive manufacturing with adoption of Zero Defect production processes without impacting the environment (Zero Effect)

▪ To encourage MSMEs to constantly upgrade their quality standards in products and processes

▪ To support “Make in India” campaign

Objectives

▪ Industry awareness programs, regional/state/national workshops, training of officials of DIs, TCs, DICs

▪ Accreditation of Assessment & Consulting agencies, Training and certification of Assessors & Consultants 

▪ Online systems including e‐platform for assessment and e‐content for awareness & training

▪ Assessment, Rating & Certification of MSMEs▪ Gap analysis & Handholding for improving rating of MSMEs▪ International Benchmarking

Activities

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Methodology 

Awareness and training

▪ Through Implementing Agencies like QCI, NPC, Chambers, MSME‐DIs, MSME Technology Centers, Industry Associations, BEE, etc.

▪ To develop e‐learning modules for capability building

Third party site‐assessment

▪ Assessments by Certified Assessors of accredited Credit Rating Agencies, and other accredited agencies etc.

▪ Online auto‐allocation of assessors and monitoring of Assessment process

▪ Tab based Site‐Assessments

Third party consultancy (gap analysis and handholding)

▪ Consultancy by Certified Consultants of accredited Consulting Agencies/Bodies, and Certified Individual Consultants

▪ Online auto‐allocation of consultants and monitoring of Consulting process

▪ Tab based reporting of Site‐Visits

Certification ▪ Final Rating and Certificates to be issued by QCI

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▪ SSC chaired by Development Commissioner of MSME to guide, review, monitor and provide overall direction for implementation of the scheme

▪ Quality Council of India (QCI) to function as the NMIU for the scheme

Routine functionalities

Overall guidance and direction

Screening and Steering Committee (SSC)Chaired by DC‐MSME

Facilitation, Implementation, Coordination and Monitoring 

National Monitoring and Implementing Unit (NMIU)

QCI

Implementing Agencies

Rating & Other Agencies

Consultants & Consulting Bodies

Scheme governance

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ZED is a Maturity Assessment Model

ZED certification 

▪ Assessment of a Unit on minimum 30 out of 50 parameters, including 20 mandatoryparameters

▪ Additional 25 parameters for MSMEs supplying to Defense Sector

Each parameter comprises of 5 Maturity levels

Level 1 (0 Marks) Struggler 

Level 2 (2 Marks) Beginner

Level 3 (3 Marks) Organized

Level 4 (4 Marks) Achiever

Level 5 (5 Marks) World Class

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5 levels of ZED rating system

How does ZED rating system work?

An example

Company X is being rated on 30 parameters 

Hence, the scores will be calcu‐lated as

Parameters Level Marks

4 5 20

8 4 32

18 3 54

Total 106

Of these 30 para‐meters

On 4 parameters the MSME is at Level 5

On another 8 parameters it is at Level 4

On remaining 18 parameters it is at Level 3

Company X Rating

(Total points/applicable parameters): 106 / 30 = 3.53

COMPANY X is rated as: ZED DIAMOND<2.2 No rating

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The ZED Disciplines 

Process Design for Environment Management

ENABLERS FOR EMISSION, EFFLUENT & WASTE DISPOSAL ACTIVITIES

Pre‐production (startup activities) for Environment Management

Production and Maintenance activities

Product Design for Environment 

Post Production activities

Process Design for Quality

ENABLER FOR PROCESS QUALITY

Pre‐production or start‐up activities

Production & maintenance activities

Product Design for Quality

Post Production activities

Facility

Enablers for resource management 

Human Resource

Selection control and improvement of outsourced organizations.

Enabler on outsourced activity

Outcomes for quality performance

Outcomes parameters

Outcomes for Process Performance

Outcomes for environmental performance

Outcome for overall company performance

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ZED Defence Model

Risk Assessment

Technology specific to defence

Financial Discipline

Defence Quality System

Post delivery and customer feedback

Design Discipline

Security, Safety & Confidentiality

Defence Outreach

Additional Disciplines for ZED Defence

To cater the need of defence industries,

QCI has developed a holistic ZED defenceModel.

QCI has integrated another 25 parametersspecifically designed to measure MSMEperformance in defence sector.

These 25 parameters will be additional to30 parameters from the generic ZED model.

Quality Council of India

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Sector specific sectors

Since each sector focuses on its unique operating conditions, we have developed sector specific models that address these conditions. These sectors are:

• Machinery and equipment • Food processing• Chemical • Pharmaceuticals• Electronics• Thermal Power / Renewable Energy• Textiles• Wearing Apparel• Wood & Furniture• Metal & Foundry• Defence

These sectors are aligned with Ministry of MSME sectors as well as sectors under the Make in India initiative

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Benefits of ZED Scheme for MSMEs

Other benefits expected to be announced by the Government in the near future

Credible recognition for international investors seeking investment in India

Streamlined operations and lower costs

Superior quality, reduced rejection and higher revenues

Increased environmental consciousness and social benefits

“ZED Mark” to enable an MSME to be seen as a company with a difference

Part of supply chain of national & international OEMs

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The Awareness Video 

ZED Awareness Module

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Q&A

?

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WORKSHEET 1

Source: 

Instructions:The following set of questions is just to test your understanding of the informationdisseminated to you through the video and presentation module

Each question has exactly one correct answer. Use tick mark to choose

Do not overwrite and the time to complete each set is 5 minutes

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Worksheet 1 – Answers (1/2)

Source: 

1. During which event was the ZED Pilot Report released?a. Make In India Weekb. Start‐up India Weekc. National Quality Conclaved. Skill India Week

2. What is the target number of MSME for next 5‐7 years?a. 22,222b. 50,000c. 1,00,000d. >1 million

3. What is the overall budget of the scheme?a. 461 croreb. 471 crorec. 391 crored. 491 crore

4. Who are the implementing agencies for the scheme?a. QCI, Associations, Chambers, Credit Rating Agenciesb. QCI, Chambers, MSME‐DIs, Credit Rating Agenciesc. QCI, Associations, MSME‐DIs, Credit Rating Agenciesd. QCI, Associations, Chambers, MSME‐DIs

5. Who will be conducting Gap Analysis/Consulting?a. ZED Certified Assessorsb. ZED Certified Consultantsc. Bothd. None

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Worksheet 1 – Answers (2/2)

Source: 

6. Who will be allotting the consultants?a. QCIb. M/o MSMEc. Consulting Organizationsd. Assessment Organizations

7. Who is the chair of Screening and Steering Committee of ZED?a. Secretary, MSMEb. ADC, MSMEc. DC‐MSMEd. QCI

8. Who is the NMIU for the schemea. M/o MSMEb. QCIc. ZEDd. MSME‐DI

9. Who will be providing the final certification?a. ZED certified assessorb. QCIc. M/o MSMEd. MSME‐DIs

10. What is the number of maturity levels in ZED Maturity Assessment Model?a. 4b. 3c. 5d. 6

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WORKSHEET 2

Source: 

Instructions:The following set of questions is just to test your understanding of the informationdisseminated to you through the video and presentation module

Each question has exactly one correct answer. Use tick mark to choose

Do not overwrite and the time to complete each set is 5 minutes

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Worksheet 2 – Answers (1/2)

Source: 

1. What is the number of overall parameters and mandatory parameters?a. 60 Overall, 25 Mandatoryb. 60 Overall, 20 Mandatoryc. 50 Overall, 25 Mandatoryd. 50 Overall, 20 Mandatory

2. What are the two kinds of parameters in the ZED Model?a. Enabler & Outcomeb. Enabler & Processc. Outcome & Performanced. Process & Performance

3. What is the number of additional defense parameters?a. 20b. 25c. 30d. 35

4. What kind of parameter is “Safety Score”?a. Outcomeb. Processc. Enablerd. Quality

5. What are the various tools encompassed by ZED?a. Leanb. Six Sigmac. Kaizend. All of the above

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Worksheet 2 – Answers (2/2)

Source: 

6. Which of the below is a “ZED Rating”?a. Brassb. Titaniumc. Copperd. Platinum

7. What is covered under ZED Model?a. Quality parametersb. Environment parametersc. Bothd. None

8. What is the target for assessment in next 3 years(till FY’19)a. 20,000b. 22,000c. 22,222d. 21,111

9. The company opting for defense rating would have to be assessed on 50 Parameters

a. Trueb. False

10. Who is the Hon’ble Union Minister of MoMSME?a. Shri Giriraj Singhb. Shri K.K. Jalanc. Shri Kalraj Mishrad. Shri Haribhai Parthibhai Patel

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WORKSHEET 3

Source: 

Instructions:The following set of questions is just to test your understanding of the informationdisseminated to you through the video and presentation module

Each question has exactly one correct answer. Use tick mark to choose

Do not overwrite and the time to complete each set is 5 minutes

28Source: 

1. What would MSMEs need to register for ZED Scheme via ZED Portal?a. Mobile Numberb. Mobile Number and Email IDc. Mobile Number and PAN Card d. Only (B)

2. What is the sequence of 3 stages of assessment?a. Online Self‐Assessment, Site Assessment, Desktop Assessmentb. Desktop Assessment, Online Self‐Assessment, Site Assessmentc. Desktop Assessment, Site Assessment, Online Self‐Assessmentd. Online Self‐Assessment, Desktop Assessment, Site Assessment

3. MSMEs can go for re‐rating without consultinga. Trueb. False

4. When would be the subsidy applicable during re‐rating?a. When the rating remains sameb. When the rating goes downc. When the rating goes upd. Subsidy remains the same irrespective of the rating

5. What is the duration of certificate validation?a. Till FY’19b. 4 yearsc. 3 yearsd. 2 years

Worksheet 3 – Answers (1/2)

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Worksheet 3 – Answers (2/2)

Source: 

6. What should be the minimum rating for availing consulting under the scheme?a. No rating is requiredb. Silverc. Bronzed. Gold

7. Who will select the parameters for site assessment?a. NMIUb. Ministry of MSMEc. MSMEsd. Site Assessor

8. What would happen to an MSME not getting any rating post site assessment?a. A certificate would be issued and MSME applies againb. A certificate is issued with 2 year validityc. MSME undergoes desktop assessmentd. No certificate will be issued

9. What is the number of man‐days allotted for site assessment?a. 2b. 4c. 6d. 3

10. Which of the below is true?a. 2 surveillance audits would be done between 2 certifications of MSMEsb. 1 surveillance audits would be done between 2 certifications of MSMEsc. 0 surveillance audits would be done between 2 certifications of MSMEsd. 3 surveillance audits would be done between 2 certifications of MSMEs

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Next Steps

Next Steps

1. Register yourself at www.zed.org.in

2. If there are still any queries , kindly mail them to: zed@qcin.org

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